Doesn't the US have to drastrically reduce its debt?
And doesn't reducing the debt meaning drawing down the money supply by turning outstanding cash in the marketplace and returning it to the bank where it is sopped up by the negative equity of the reserve banks liabilities?
All this newly minted money the banks are getting from selling their bonds to the Fed is flowing overseas bumping up their their currencies. Americans are overdrawn and don't want to borrow anymore. Need proof? There is little demand for housing and other investments among the general public.
So foreign countries are getting the borrowed dollars as US banks seek places where people want to borrow their money. They are flush with cash after dumping all their bonds onto the Federal Reserve. Eventually this funny money needs to be repaid back to the US where it will be repatriated sending the US dollar up.
Isn't that eventually where all this goes - back to the Federal Reserve where it is mopped up.
And this is how I see how America is F&%@ing the world, while the world thinks they are finally winning this one.
We make money temptingly cheap. We lend it to foreign nations by lending to foreign individuals, businesses, and government. They think their economy is strong because there is all this new demand for their currency because nobody wants to buy the US bonds and earn basically 0%. Then the interest rates rise one day and rise and rise and rise. All of a sudden people need to chase down money in the real economy to pay their increasing debt burdens. The money supply decreases to a level where people are JUST barely able to pay back their debt burden and the value goes back up when the banks own most of the capital while ensuring the control of society.